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1994-023-RES WHEREAS, PEDC DID ACCEPT THE REVISED PROPOSAL RESOLUTION NO. 94-023 WHEREAS, the Paris Economic Development Corporation did, on March 3, 1994, accept the revised proposal of THE PACE GROUP, Tupelo, Mississippi, entitled, "Paris, Texas Flexible Incentive Program, Business & Industry Expansion/Retention Program, & Visioning" attached hereto as Exhibit A, which contains three tasks selected by the Board of Directors of the Paris Economic Development Corporation; and,. WHEREAS, the Paris Economic Development Corporation has recommended said proposal to the City Council of the City of Paris for approval; and, WHEREAS, it is deemed to be in the best interest of the citizens of the City of Paris to approve said proposal as recommended by the Board of Directors of the Paris Economic Development Corporation and to authorize the City Manager to execute the acceptance of said proposal; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, that the proposal presented by THE PACE GROUP, entitled, "Paris, Texas Flexible Incentive Program, Business & Industry Expansion/Retention Program & Visioning", be, and is hereby accepted in the form attached hereto as Exhibit A; and, BE IT FURTHER RESOLVED, that the City Manager of the City of Paris, Michael E. Malone, be, and he is hereby authorized and directed to execute on behalf of the City of Paris the acceptance of said proposal. PASSED AND ADOPTED this 10th day of March, 1994. ATTEST: '-m.~~l~ Mattie Cunningham, CIty Cle k T. K. Haynes, City Attorney Proposal for: Paris Texas Flexible Incentive Program Business & Industry Expansion! Retention Program & Visioning Presented by The PACE Group March 1994 EXHIBrr A March 4, 1994 The Honorable Mayor George Fisher & City Council Members P.O. Box 9037 Paris, TX 75461-9037 Dear Mayor Fisher and City Council Members: Enclosed is the revised proposal with the three tasks your Paris Economic Development Corporation has selected. We commend these leaders for their insight in making a practical recommendation to you for your review and approval. The cost for these three items is $36,500 plus expenses. We will do everything possible to keep expenses to a base minimum. The PACE Group looks forward to working with you and the fine citizens of your community. If you have any questions or concerns please feel free to call us at (817) 924~0660 or (601) 842-1818. Sincerely, John M. Lovorn, Jr., C.E.D. President Brenda Shull, Ph.D. Senior Vice President cc: Mr. Philip R. Cecil Mr. Curtis Fendley Mr. Eric Clifford Mr. Barney Bray, III Mr. Leon Williams TASK I FLEXffiLE INCENTIVE PROGRAM The PACE Group will design a Flexible Incentive Program Guide for the PEDC. Working with the PEDC Board, we will recommend the best approach for evaluating potential projects based on a costlbenelit analysis for existing industry and new firms: We will review other cities such as Athens, McKinney, Carthage, and Henderson, and present findings on the Do's and Don'ts of this suggested Flexible Plan. We will provide weighted options based on jobs created. The Summary Report will provide clear and concise bullet-point recommendations on best practices. It will also include areas to avoid which could cause embarrassment for the PEDC and the City Council. TASK n BUSINESS RETENTION AND EXPANSION PROGRAM Critical to any economic development plan is the retention of existing industry. Traditionally the greatest area of economic growth is within the expansion programs of existing industry. Therefore, great efforts must be expended in current industry. Reasons for a strong business retention and expansion program are as foHows: . Research has clearly shown that most expansions take place at existing locations or within 50 miles of existing facilities. . Working with existing businesses cqsts less than recruiting new business locations. Th.e cost per job created is much less for the existing business expansion programs compared to the recruitment of new businesses. . Existing businesses are already supplying jobs, tax base, and other benefits to the community and deserve attention. 3 . Existing businesses are the best ambassadors for attracting new firms. Prospects typically will discuss the business climate with existing finns. . Existing businesses are the best indicator of the health of the local .... economy. . Local retention and expansion programs can influence an existing firm to remain and/or expand. Such programs can mean the difference between losing, retaining or gaining jobs and investments. These reasons may be briefly summarized by the following quote: "...the flIst order of the economic development business must be to keep the existing companies happy where they are, so that they do not become another community's target." An effective business retention and expansion program will have one significant benefit _ the support and creation of new jobs, investments, tax base and expansion of personal income and wealth. Other benefits from a program include: . Provision of an "early warning" system for companies in trouble and identification of companies in need of assistance for expansion. . Information on the competitive position of the community. . A source of referrals to other companies looking for new locations or suppliers to existing companies that may be recruited. . Demonstration of community's pro business climate. . Provisions of a channel of communications between local companies and community leadership. 4 The PACE Group recommends: . The development of a Business Retention Survey which would be approved by PEDe Board to use in interviewing the TOP 20 firms in your community. . The origination of specific strategies, after the interviews, to best create new jobs from your existing industrial base. Example: XYZ Corporation Group Vice President of Manufacturing would be based in Chicago. A strategy that could be reconunended is that the Mayor or a PEDC Board Member visit with this individual by the third quarter of 1994 with documentation on labor availability and costs compared to other sister facility loca- tions that could be competing for additional products in their facility. The PACE Group will assist in preparing the proper data to effectively sell Paris to the home office of your existing firm. TASK III PEDC WORKSHOP WITH COMMUNITY AND INDUSTRY LEADERS Diverse groups have different needs and objectives. For government officials, the result of strategic planning is to achieve areas of agreement among diverse constituencies in order to bring about desired change. For businesses and industries, the resul.t of strategic planning is to maximize profits. For educators, the result of strategic planning is to fulfill the need for a skilled work force. 5 Strategic planning allows area people and organizations to have 4 voice in the planning process, which allows for ownership of the results. Total area participation is the only way to ensure success of strategic planning. Strategic planning works best when there is a balance between dealing with the present and preparing for the future. Concerned citizens must work together toward the simultaneous planning and implementation of current and future goals. This project will result in recommendations of strategies to further diversify the economic base of Paris. The method used to facilitate this process will be The PACE Group's own process of planning which analyzes the forces which impact the fields of concern. Scope of Work for TASK III Our work wi\l begi n with leaders of Paris Key business leaders. public officials. educators and interested citizens, to accomplish the following objectives. . Identify goals and objectives . Develop Leadership Survey . Determine roles and responsibilities of teams . Insti rote timelines 6 (C) 1994 In TASK ill, The PACE Group recommends, Participation Achieves Commitment and Excellence, a five step process to address specific questions that will lead to proactive implementation. 1. PRACTICAL VISION: What are our community goals? What does this community want to look like five years from now? 2. RESTRAINING FORCES: What restrictions are preventing our community from the realization of our vision? DRIVING FORCES: What are the positive factors presently moving our community into the scope of our vision? 3. STRATEGIC DlRECflONS: What activities will minimize the restraining forces? What actions will release the driving forces and allow the practical vision to come into being? 4. STRATEGIC AcnONS: What specific actions will implement the Strategic Directions? 5. IMPLEMENTATION TIMELINE: What taSks are required to implement this actions? How will they get done? By whom? When? Where? 7 1. Short Term 2. Interrnedliate 3. Long Term Suggested Processes Bring area citizens and key business leaders together to develop consensus identifying issues and concerns which need immediate attention. Involve the pedc to set priorities for key projects which they will identify, plan and implement. A long tenn agenda of concerns should be developed. These concerns should be ranked ordered. As m.any citizens as possible should help in developing and implementing pilot programs which will establiSh important capacities for change within the thinking and operations of the community. While specific short-term action is being developed to deal with pressing problems. many people must be networked to prepare PEDe and Paris for continued growth and development. Key business leaders and interested citizens must take the time to become familiar with future trends. The key ingredients of this process will depend on local leaders and their desire to implement their own chosen goals. objectives, and strategies. The PACE Group will facilitate the strategic planning process in cooperation with the business leaders and public officials of PEDC. Our understanding of your Deeds is that you seek to accomplish the following: . Empower PEDe to set its own vision . Empower PEDe to set short-range goals and long-range goals . Empower PEDe to establish its own implementation timeline to accomplish goals and strategies 8 Project Fees 1. Design a Flexible lncentive Program Guide for the Paris Economic Development Corporation (PEDe) Board Members . Cost: $14,500 plus expenses 2. Develop a first-class Business and lndustry ExpansionlRetention Program for PEDe Board Members. Cost: $14,500 plus expenses 3. Facilitate a visioning conference to build consensus and develop short and long- range goals and objectives for Paris. Cost: $7,500 The total price for this plan is $3~,500 plus expenses. 9 THE PACE GROUP OUT.OF..POCKET EXPENSES TO BE BILLED 1. Airline Tickets - We will fly coach and will strive to get the lowest fare. 2. Motels - We will stay in whatever motel you select for us. 3. Food - We nonnally eat on the road from places like McDonald's, Hardee's, etc, Occasionally, with the PEDe Chainnan's approval, we may eat at a nice resta~rant after a long day. 4. Overnight shipping, postage, etc. 5. Telephone. We provide a detailed bill with actual calls made. 6. Rental Car - We use Budget and would rent a mid-sized car. 7. Personal Vehicle Mileage. Tupelo to Paris: 470 miles one way. Ft. Worth to Paris: 180 miles one way. We ask to be reimbursed on car mileage according to the city's established rate. Normally our projects vary from 23 to 28~ per mile. We will drive from Tupelo or Ft. Worth unless the Chairman authorizes us to fly in an urgent situation. We do not expect expenses to run high on this project.. The following information shows expenses on a typical trip. J. Lovom/I. Hicks: 950 x 26~ = $247.00 B. Shull: 360 miles x 26~ = $93.60 3 nights lodging for 2 people: $225 Food: $20 per day per person Miscellaneous: $25.00 10 Authorization To authorize this project, you may issue a letter of acceptance or a purchase order, attaching a copy of this proposal for reference. Alternately, this proposal can serve as a contract by your signing a copy and returning it to us. We look forward to working with you on this projec~ and are prepared to begin March 22, 1994. Sincerely, Authorized and Accepted by: The PACE Group (N ame) John M. Lovorn, Jr., C.E.D. Presi dent (Title) (Company) Brenda Shull, Ph.D. Senior Vice President (Date) CITY OF PARIS, PARIS, TEXAS ATTEST: Michael E. Malone, City Manager Mattie Cunningham, City C~ APPROVED AS TO FORN: T. K. Haynes, City Attorney 11